Schroders axes 50 after 68% profit dive

Tuesday 17 March 2009 14:07 BST

Asset management and private banking giant Schroders today axed around 50 staff in its City HQ on Gresham Street — about 5% of its 1100-strong London workforce. Insiders claimed that "whole teams" were being shown the door.

Schroders, which employs around 2830 staff worldwide, dismissed speculation that up to 300 could face the axe.

A spokesman said: "There are some job reductions. Our chief executive Michael Dobson has said that we are reviewing our cost base and that involved headcount, compensation costs and non-compensation costs. But we have very clearly said we would not take any action that would damage the business."

Sources suggested that Schroders is more likely to cut spending on infrastructure, IT and other projects.

The firm announced last month that pre-tax profits for 2008 dived 68% to £123 million, after exceptionals. Assets under management fell 21% to £110.2 billion.

Other asset managers such as Fidelity, F&C and Blue Bay have also laid off staff in recent months.